Cheap Smartphone Makers In Asia Hold The Keys To The Next Wave Of Mobile Growth

BII Apple and Samsung have dominated the smartphone market for years. But now that the developed market is basically saturated, these companies no longer just have each other to worry.

The real threat these days comes from cheap smartphones made by local manufacturers in emerging regions. Companies like Xiaomi and Micromax stand to drive the next big wave of growth in the mobile market, as their phones bring a huge number of people online for the first time.

And these companies don't just sell phones. They run their own successful app stores, mobile operating systems, and mobile services.

In a new report from BI Intelligence, we explain why global consumer Internet and mobile companies will increasingly need to work with companies like Xiaomi and Micromax — not to mention China's Lenovo, Huawei, ZTE, and Coolpad — if they don't want to miss out on mobile's next growth phase in emerging markets.

The local manufacturers are not provincial outfits producing knock-offs. But their main competitive tool, for now, remains price. Local manufacturers in China and India match the features of more expensive devices and manage to produce comparable hardware at a fraction of the price. A Micromax handset comparable to Apple's iPhone 5C costs less than one-fourth as much.